Demand For Debt Consolidation Expected To Rise Despite Rate Cut

Borrowers across the UK are still likely to face big debt repayment burdens despite the Bank of England's shock 1.5 per cent cut in interest rates, warns Credit Problems No Problem (www.creditproblemsnoproblem.co.uk). Demand for unsecured loans for debt consolidation will continue to rise despite the Bank slashing the base rate to 3.0 per cent, it is predicted.

Newton Abbot, Devon (PRWEB) November 9, 2008 -- Borrowers across the UK are still likely to face big debt repayment burdens despite the Bank of England's shock 1.5 per cent cut in interest rates, warns Credit Problems No Problem (http://www.creditproblemsnoproblem.co.uk)

Demand for unsecured loans for debt consolidation will continue to rise despite the Bank slashing the base rate to 3.0 per cent, it is predicted.

UK banks are unlikely to pass on the full interest rates reduction, leaving borrowers with big mortgage loans and bad credit still clamouring for fast cash loans online to consolidate debts and reduce repayments.

"I suspect that none of the high street banks will pass on the full 1.5 per cent reduction, although I would love to be proved wrong," said a spokesman for Credit Problems No Problem, which specialises in sourcing unsecured loans for borrowers with bad credit ratings.

"Will this rate cut translate to the mortgage market? I would be greatly surprised if the whole 1.5 per cent were to be passed on. In a week when interest rates were widely predicted to come down, what did the banks do? They put rates up!

"Perhaps the banks may now feel pressured by the base rate cut to make some kind of token gesture.

"Will the interest rate cut be passed down into the unsecured loan market even slightly over the next few weeks? We sincerely hope so."

Last month the banks were reluctant to pass on the previous 0.5 per cent interest rate cut because they needed "to shore up their devastated balance sheets," said the Credit Problems No Problem spokesman.

"In the long term, this might be for the good because ultimately, as the banks stabilise, so the economy should also stabilise.

"However, millions of families and business owners need the full base rate cut to be passed on now to save struggling firms and countless thousands of jobs."

Many of those families with money problems are struggling to secure finance because their credit ratings are impaired by County Court Judgements (CCJs) and defaults.

Credit Problems No Problem has been bombarded by calls from debt victims who fear they have been blacklisted by credit ratings agencies because of their CCJs and defaults.

They can take comfort from British Retail Consortium data showing that annual food price inflation dropped to 7.5 per cent in October from 9.1 per cent in September. Inflation on non-food items, such as electrical goods and clothing, fell to 0.7 per cent (September: 0.8 per cent).

But the latest survey from mortgage lender Abbey does not make happy reading: "It shows the main cost of living for most households is the mortgage or rent, with almost a quarter of our income spent meeting this cost," said the Credit Problems No Problem spokesman.

It was a huge worry with "one in 10 Britons now spending 90 per cent of their income on rent and bills."

Credit Problems No Problem holds a Consumer Credit Licence issued by the Office of Fair Trading. The company is also covered by the Financial Ombudsman.

Credit Problems No Problem is also registered with the Information Commissioner's Office for Data Protection.

For rapid help, phone 0800 412 5634 or visit Credit Problems No Problem (http://www.creditproblemsnoproblem.co.uk)

Notes For Editors

www.creditproblemsnoproblem.co.uk

Credit Problems No Problem Ltd

TBC House

Cavalier Road

Newton Abbot

TQ12 6TZ

United Kingdom

Tel: 0800 412 5634

Credit Problems No Problem was formed in 2003, bringing together a team of specialists that together offers 26 years of expertise to help applicants gain the unsecured loans they need.

From its UK head office in Devon, Credit Problems No Problem operates across Britain, sourcing loans for people with bad credit.

Credit Problems No Problem holds a Consumer Credit Licence issued by the Office of Fair Trading. The company is also covered by the Financial Ombudsman.

Credit Problems No Problem is also registered with the Information Commissioner's Office for Data Protection.

No fuss service - guaranteed.

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